FY16 AGM

Presentation

November 2016

Neville McAlary – Managing Director and CEOFor

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1. FY2016 Recap

2. FY2017 Outlook

3. Strategic Outlook

4. Questions

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Agenda

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1. FY2016 Recap

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FY2016 Highlights

Maintained top quartile

safety performance

Organisation continued to embed safety as a value in all aspects

of planning and work

Total recordable injury frequency rate 12.4 (per Mill hrs)

Focus on Safety Leadership and Hazard Identification

Operations and Equipment compliant with legislative requirements

Improved financials Delivered predicted underlying profit in a trying period for the

sector

Sector faced continued

pricing impacts. Clients

searched for cost

reductions and scope

Revenue $70.4m (+4%)

Underlying NPAT $1.6m (+87%)

Underlying EBITDA $4m (+17%)

Underlying EBITDA margin 5.7% (+12%)

Cash on Hand $3m (Maintained)

Value of NTA per security increased to $0.37 (+7%)

Net Debt maintained at low

level

Equipment Debt reduced to NIL

Net Debt* $2.4m** (Maintained)

Low Debt has been fundamental in DSB delivering projected

positive results

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FY2016 Highlights (continued)

Work Booked increased

Maintained Client Base

Identified growth opportunities in Qld Bowen Basin

Negotiating whole of mine and coal supply agreement with new

client

Supply Mining Solutions New client proposals – presented contract mining options

Unique equipment fleet supports current contract works and

provides gateway to new works

Staffing changes Integrating new people into the team with new networks and skills

– forward looking with a value add approach

Declaration of full year

dividend

Provided positive return on investment and positioned to improve

on this position

Directors declared a final dividend of 0.8 cents per share on the

back of the FY 16 results

Revised and new targeted dividend payment plan – payout ratio of

60% of underlying NPAT

Increase market awareness of DSB

Report against value creation plan

Observe market trends and take-on-board market indications

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Note: All comparisons are YOY * Interest bearing debt only less cash and cash equivalents . **Includes $4.0m associated with an invoice facility

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FY2016 Financial Recap

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* Interest bearing debt only less cash and cash equivalents . **Includes $4.0m associated with an invoice facility

Key Statistics improved or in balance with prior year

Change FY2016 FY2015

NPAT 50% $1.2m $0.8m

Underlying NPAT 78% $1.6m $0.9m

Revenue 4% $70.4m $67.5m

EBITDA (12%) $3.0m $3.4m

Underlying EBITDA 14% $4.0m $3.5m

Underlying EBITDA margin 12% 5.7% 5.1%

Underlying earnings per share 85% 3.40c 1.84c

Cash on hand (3%) $3.0m $3.1m

Net Debt* 0% $2.4m** $2.4m**

Equipment Debt (100%) $nil $0.9m

Net Tangible Assets per security 9% 37c 34c

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Balance Sheet & Cashflow

Balance Sheet FY16 FY15

Cash ($m) 3.02 3.11

Total Assets ($m) (excluding intangible assets) 33.79 31.84

Total Shareholder funds ($m) (excluding intangible assets) 18.28 17.15

Net Debt ($m) 2.4* 2.4*

Net Debt to Equity 13% 14%

Cashflow FY16 FY15

Operating activities ($m) 1.55 1.45

Investing activities ($m) -1.64 9.65

Financing activities ($m) 0 -9.54

Net (decrease)/increase in cash ($m) -0.1 1.55

Cash at beginning of year ($m) 3.12 1.56

Closing cash ($m) 3.02 3.12

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* Interest being debt and includes $4.0m associated with an invoice facility

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2. FY2017 Outlook

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Client Relationships

DSB maintains a competitive edge:

• Experienced at all levels of mine management and mining

operations. Increasing formal contract control skills.

• Work with clients to understand the desired outcomes and provides

a total enterprise approach - delivered by skilled project teams.

– Continue to up-skill DSB Team on Contract Administration

• Focused on offering greater value to mine owners through cost

benefits and solutions based service that underpins repeat work

• Right sized fleet of equipment for current works

– Ability to access additional fleet via supplier relationships

• Positions well to seize strategic growth opportunities.

– Focus on additional asset requirements being paid back across term of project

for which they are costed against

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Snapshot of current workbook

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Client & Project Key Work

Wollongong Coal

Wongawilli Mine

• Whole Mine Operation and Supply Agreement

• 1.45 Mt Coking Coal delivered over 21 month period

• Exported via local coal port/terminal

• High potential to increase access to additional reserves

South 32

Appin Mine

• Roadway development

• Secondary support and out-bye services

• Supply of supplementary Labour to Gas Drainage and Dev.

• Project works for conveyor belt installations and civils

Glencore Integra

Mine

• Operational Readiness Work Group

• Including Surface Control and UG Experienced Miners

Peabody

Metropolitan Mine

• Secondary support and mine services

• Backfill Plant Project works and supplementary Labour

• Conveyor belt standards and Maintenance Works +

Whitehaven

Narrabri Mine

• Development assistance at Whitehaven’s Narrabri mine

• Longwall maintenance and relocation support services

Boral

Berrima Mine

• Ongoing care and maintenance activities continued at Boral’s,

Berrima Mine

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Pipeline

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Activity in the major tender/submission pipeline

continued to increase in Q2 FY 2017

Focusing on those that align to DSB Strategy

New business enquiries increasing

Focused on delivering and retaining current contracts

– Appin contracts will retain w/force numbers

Engaging with Coal Mine operators to develop low

cost coal production options

DSB envisage the potential of business development

opportunity between $50 million and $150 million in

potential revenue outcomes in the next 2-3 years.

A number of these opportunities are directly aligned to

DSB ability, experience and production equipment.

Supporting DSB to make a unique offering that

will result in a moderate to high potential of

procuring these projects.

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Major Challenges

• Production at Wongawilli below target due to late

start and equipment downtime impacting on

profit and cash flow

– Implementing improvement plan to enhance

production and improve profit

• Improving workbook in Queensland

– Planned re-establishment of DSB into Bowen basin

delayed with conservative approach to Coking Coal

Price bounce back by producers

– Active in area and replying to tender enquiries

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Wongawilli Project Production Schedule

• 100 Year Old Mine – Idled for 2 years

• Delayed start due to state of mine at “Contract Take-over”

• Favourable Outcome to several Mines Dept. Inspections

and Targeted Audits – minor improvement notices only.

• Recovery Plans detailed, resourced and monitored13

Delayed Production Start

Equipment Issues

Additional reserves and 2 Units in Extraction

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4. Strategic Outlook

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Business Strategy

Safety Leadership from Top - Down

Building client relationships and identifying new players

Employment and Cost structures to be project term focused

Cash flow accountability to be managed at Project level

Improved stakeholder communications

Monitoring and Reporting on Key Metrics

Reduce corporate over heads to 3% revenue in 2 yrs.

Target Mining Operations and Clients with:

Need for Contract Mining or Production Contracts

Term contracts for general and specialized contracting

Develop Plan to create shareholder value15

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Outlook – Coal Sector

Metallurgical coal (currently DSB main client base & growth area)

USD coking coal price strengthening in last Quarter with supply volumes

maintained to traditional markets

Recent increases in coal price has some producers revisiting plans and

potentially “bring on” idled production.

Production Volumes from large Qld Open-cuts being sustained with new mines

replacing high cost operations.

Low capital cost expansions and production options being considered

New operators entering sector – reopening retired assets of larger operators.

Thermal coal

Prices stabilized but demand is dependent on Global Growth and Severity of

Northern Hemisphere Climatic Seasons

Coal will maintain a strong position in the global energy generation market

Indonesian Coal Exports down as End Users seek higher quality fuel sources

Australian long-term production forecast to maintain volumes.

Note – Mining approvals continue to be increasingly difficulty to gain. Existing coal approvals will increase in value.

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Outlook Statement - Delta SBD

Executive Management and the Board are reasonably confident of

further growth in underlying earnings for FY17. It is too early to provide

specific guidance other than to say underlying earnings for the

upcoming year should be at least at the level of FY16. This, combined

with a new targeted payout ratio of 60% of underlying earnings will

provide the fundamentals of improved shareholder wealth and market

awareness of Delta SBD.

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Contact Details

Gabe MeenaChief Operating Officer 02 4629 0300gabe.meena@deltasbd.com.au

Stephen BizzacaManaging Director & Chief Executive Officer02 4629 0300steve.bizzaca@deltasbd.com.au

Tony McFaddenChief Financial Officer &Company Secretary02 4629 0300tony.mcfadden@deltasbd.com.au

Address: Suite 220, 4 Hyde Parade Centric Park, Campbelltown NSW 2560

Appendices

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Corporate Overview

Capital structure

Shares on issues 57,270,670

Share price (16 November 2016) $0.215

Market Capital $12.31M

Board

Glyn Dawkins Non-executive Chairman

Neville McAlary MD and Chief Executive Officer

Stephen Bizzaca Non-executive Director

Geoff Garside Non-executive Director

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Top Shareholders (as at 21 October 2016)

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* excludes Stephen Bizzaca shares, included in “Stephen Bizzaca entities”

Shareholder Name% of fully paid issued capital

Stephen Bizzaca 30.08%

Glyn Dawkins 22.09%

JP Morgan Nominees Australia Limited (Collins Street Value Fund) 11.99%

Trinity Management Group Pty Ltd* 5.25%

Nehemine Pty Ltd <McCreadle Family A/C> 1.52%

Mr David Colin Archibald 1.45%

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Important Notice and Disclaimer

The following disclaimer applies to this presentation and any information provided regarding the information contained in this presentation (the Information). You are

advised to read this disclaimer carefully before reading or making any other use of this presentation or any information contained in this presentation.

Except as required by law, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, reliability or correctness of the

Information, opinions and conclusions, or as to the reasonableness of any assumption contained in this document. By receiving this document and to the extent

permitted by law, you release Delta SBD Limited (“Delta SBD”), and its officers, employees, agents and associates from any liability (including in respect of direct,

indirect or consequential loss or damage or loss or damage arising by negligence) arising as a result of the reliance by you or any other person on anything

contained in or omitted from this document.

Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates,

prices, reserves, potential growth of Delta SBD, industry growth or other trend projections and any estimated company earnings are or may be forward looking

statements. Such statements relate to future events and expectations and as such involve known and unknown risks and uncertainties, many of which are outside

the control of, and are unknown to, Delta SBD and its officers, employees, agents or associates. In particular, factors such as variable climatic conditions and

regulatory decisions and processes may cause or may affect the future operating and financial performance of Delta SBD. Actual results, performance or

achievement may vary materially from any forward looking statements and the assumptions on which those statements are based. The Information also assumes

the success of Delta SBD’s business strategies. The success of the strategies is subject to uncertainties and contingencies beyond Delta SBD’s control, and no

assurance can be given that the anticipated benefits from the strategies will be realised in the periods for which forecasts have been prepared or otherwise. Given

these uncertainties, you are cautioned to not place undue reliance on any such forward looking statements. Delta SBD undertakes no obligation to revise the

forward looking statements included in this presentation to reflect any future events or circumstances.

In addition, Delta SBD’s results are reported under Australian International Financial Reporting Standards, or AIFRS. This presentation includes

references to EBITDA and NPAT. These references to EBITDA and NPAT should not be viewed in isolation or considered as an indication of, or as an

alternative to, measures AIFRS or as an indicator of operating performance or as an alternative to cash flow as a measure of liquidity.

The distribution of this Information in jurisdictions outside Australia may be restricted by law and you should observe any such restrictions. This Information does not

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and the market and for making your own independent assessment of the Information.

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Information or for any action taken by you or any of your officers, employees, agents or associates on the basis of the Information.

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